Let’s face it: money, True Or False Personal Finances and resources are probably the most important thing needed to live efficiently and maintain a good quality of life. Whether you plan to go on to a trip that you have longed for a long time or to finance your education through college, money is one of the most important factors that dictate the course of your life. For this, careful planning and pooling up of resources is required that must be done to make way smoothly through the perils of being financially unstable and getting bankrupt. All self-help mentors and personal growth gurus recommend putting solid effort into calculating every move and deciding the methods of funding for managing the expenses and financing of every action that one must take in his life. For this, the term “personal financing” has been coined. In other words, arranging money and pooling up resources for yourself by any means all the while covering the plans for arrangement is what personal financing teaches us. Gone are the days when people used to live simpler lives and had a single constant stream of income which shaped their needs and necessities; there used to be a general lack of planning and homework regarding the cents and mere chance shaped the future of a person. For a small village farmer living off the growth off a tiny piece of land that might be enough to feed a family, living in such a way might still be viable, but it surely isn’t the best plan if one plans to grow personally and expand his ventures. In todays world, personal financing can be done in many ways: loans, credit cards, selling of properties and investing in something are some of the viable ways by which a person can get his hands on resources to be used for any purpose. But human short-sightedness and lacking of planning for distant future might make him make do financial wrong-doings that can affect him seriously, even turn him bankrupt. The imperative is to have a clear vision and find out what resources a person must utilize and what are the red flags that one should avoid. This brings us to personal wisdom: one must be able to determine what personal financing plans will help the person grow and accumulate greater good and what financial moves might be economically fatal for a person. Like every growing economy and booming business, the leather wallet in your pocket is an economy in itself that requires insight and intelligence to ensure that it does not run out of money and falls in the pitfall of false personal financing. In this article, we will look at some of the factors that might help one to differentiate the right from the wrong and true personal financing from false ones.
Justifying every move is important:
Suppose you are a man with a good salary, a good standard of living, a suitable retirement plan and overall a suitable quality and standard of life. Like every other person, you want to put more money into your lifestyle and achieve a better lifestyle. For this, you might want to turn to banks to get loans. For the time being, the loans might improve your conditions and make you get a better lifestyle, but the impending doom comes anyway: when its time to pay the money back, you have no plans in your head to generate money from, meaning there might be a good chance of you losing your properties, financial stability and income sources for paying off a loan that you did not need in the first place and had no plans for making use of your resources and True Or False Personal Finance. The resultant financial wreck will point out towards the fact that your once stable financial condition has been ruined by one false personal financing move that couldn’t be justified in terms of its purpose. On the other hand, if there were a certain plan in your mind about the actions that you would undertake with the loans that you were to acquire, you would have had made an investment, or taken up a college degree that would have ensured that the loan be repaid in time, leaving you more financially strong and stable than before. Thus, it is important that one justifies in his mind the action for which he is about to do personal financing. In your youth and first few decades of life, you might be attracted to put money to spend lavishly and feed off your extravaganza, but in any way, investing in yourself or making a startup in a business would be more appropriate, differentiating true and false personal financing.
The best finances come through the piggy bank:
The most important aspect of theTrue Or False Personal Finance financial course of action is to save money. Many businessmen and traders who having booming projects do not go to financial corporations and take the heave of loans and instead, depend upon their own savings. The ideal rule is to put a fixed amount of your monthly income (at least 20 to 25 percent of the total) under savings for a rainy day. At first look, one cannot think of the resources that can be pooled by making even small contributions to your savings account. In a span of few years, this might help you achieve a sum that would make a real difference in the amount of money pooled up for emergencies or paying off for anything that requires more than your regular income.
Keeping track of expenditures:
Ensuring that your hard-gathered resources do not go on to be used up unwisely is more important than gaining them in the first place. From every successful businessman on a small scale to large industries employing huge audit firms, every successful model of financing requires accountability. Thus, on a personal level, true personal finances require keeping a check at the places where the money is actually being spent. This should be started on a small scale at first: the first step is to make a list of all the expenditures made in one day. The process of solely doing so makes the person aware of the items that he should be devoting more money to and avoid the expenditures that one should avoid, even in the long run.
Wise investments are lifesavers:
Any layman would be wise enough to tell a person that it is more important to buy an asset that would generate money and make returns or at least maintain its value over the time and not depreciate in terms of worth making the person economically crippled in the future. Thus, it is better if you buy a Toyota and use the spare money to make an investment in a business, the stocks market, bonds or buying any piece of property that would increase in worth over the years than to exploit your savings account and buying a very expensive car that would cost you more in terms of maintenance and depreciate in terms of value over the years, leaving you with wrecked financial conditions over a span of time.
Personal Loans, when appropriate, are helpful:
The stigma that comes around borrowing from a bank or True Or False Personal Finance a self-finance organization is due to the fact that people usually do it without foreseeing the end and thinking of ensuring the ways to make returns, which lead to them becoming bankrupt and broke after some time. Contrary to this, if you have a great idea for a startup or want to pay for something that would certainly bring success in the years to come, personal loans would be a suitable way to pool resources needed. There are some mistakes that one should not make such as taking loans for things that are not an immediate necessity such as buying a bigger car, a bigger house or planning a holiday tour because no matter how far the person is able to delay it, false personal financing pose a problem for everyone who makes foolish moves and does not plan ahead. On the other hand, no one should point fingers at someone doing it for investing in any business that is prospected to grow and make returns more than the original cost put in it.
Money does not multiply on itself:
With the current state of inflation, it is necessary that savings should be invested in some place where it is certain that it won’t lose its worth over time. The paths on which a person can invest and accumulate resources for personal financing are practically limitless: even if the economy is destabilized, the dollar, euro or pound might lose its worth, but the stocks, the bonds, the properties or the investments made in any business would not depreciate any time soon. Thus, one way or the other, the best and the truest possible personal financing scheme would be to make mindful investments.
Summing up, it is only possible to live in this frantic milieu and ever-growing environment of the modern world by making true personal finance plans, all the while keeping oneself safe from false ones. It won’t be inappropriate to say that the currency notes and coinage remains the same; the intention for which they are being used changes the overall purpose of True Or False Personal Finance, segregating the true and the false ones.